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An Empirical Analysis of Electricity Demand in Pakistan

Noel Alter and Shabib Haider Syed
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Noel Alter: Department of Economics, Forman Christian College,Lahore, Pakistan
Shabib Haider Syed: Department of Economics, Forman Christian College,Lahore, Pakistan

International Journal of Energy Economics and Policy, 2011, vol. 1, issue 4, 116-139

Abstract: Study utilizes cointegration and vector error correction analysis to determination the long and short run dynamics between electricity demand and its determinants. Study uses time series data for Pakistan from 1970 to 2010. Johansen cointegration test indicate that variables integrate in the long run. Error correction term reflects the convergence of variables towards equilibrium. Electricity acts as a necessity in short run and luxury in long run. Study concludes that effective price and income policies, group pricing policy and peak-load pricing policy should be exercised for electricity demand management.

Keywords: Electricity Intensity; Peak-load Pricing; Derived demand; Pakistan (search for similar items in EconPapers)
JEL-codes: Q40 Q41 (search for similar items in EconPapers)
Date: 2011
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